- The minimum conventional loan credit score is 620-680+ depending on the program.
- The interest rate is based on credit score, and 720+ obtains the best rate.
- LTV requirements are based on credit score. Better scores have higher LTV limits.
- Mortgage insurance requirements are driven off credit score and LTV.
- Applicant can’t have late payments in the last year.
- Applicant can’t have outstanding judgments in the last year.
- At least two years must pass after Chapter 13 bankruptcy.
- At least four years must pass after Chapter 7 bankruptcy.
- At least four years must pass after foreclosure.
- At least two years must pass after short sale with 20% down payment, four years with 10%, seven years with less than 10%.
Conventional mortgage loan requirements state that if you have been discharged from a Chapter 7 bankruptcy for four years or more, you’re eligible to apply. If you’ve had a Chapter 13 bankruptcy, you must document that your credit reputation has been re-established for at least two years.
3. Property Requirements
Property requirements for conventional financing are easier to understand and comply with than other programs like FHA loans. Continue reading “Can I get a Conventional Mortgage Loan after bankruptcy?”